Why does producer surplus arise? Consumers buy less of some commodities than they need. Sellers' costs of production for some goods are less than the market price. Producers make more off some commodities than the consumers desire. Sellers manufacture more units of a good than consumers are willing to purchase.

Q: The following graph shows the supply curve for a group of sellers in the U.S. market for smartphones…

A: Producer surplus is a measure of the difference between the price that a producer receives for a…

Q: Which of the following will shift the supply curve for a commodity to the right? (i) An increase in…

A: Supply refers to the output that the sellers or producers are willing to sell in the market at…

Q: X and good Y are substitute in production. The demand for good X de lowers the price for good X. The…

A: Two goods are called ‘substitutes’ to each other, if they can satisfy the same need of the consumers…

Q: The demand and supply curves for the pizza market are shown in the graph below. Calculate the daily…

A: The following is a summarized response; however, for a more thorough explanation, refer to the next…

Q: Below is the market for organic strawberries. Shade total consumer surplus (CS) on the graph by…

A: The demand curve represents the quantity demanded by consumers at different price levels.The supply…

Q: A locus of points that shows the inverse relation between price and quantity all other things…

A: A consumer's desire to buy products and services, as well as their willingness to pay a price for…

Q: What would happen to the equilibrium price of Product X if demand for Product X decreased?

A: The demand curve depicts the inverse relationship between price and quantity demanded, keeping other…

Q: Suppose the prevailing price is $9 per bushel. Is there a shortage or a surplus in the market?

A: The Last Done Price or any other price determined by the Exchange prior to and/or during the same…

Q: Draw a graph to analyze the market for agricultural products (food). Label your price and quantity…

A: Figure (1) depicts the market for agricultural products. Here, X-axis and Y-axis measure quantity…

Q: How would each of the following affect the market supply curve for corn? 1. A new and improved crop…

A: Answer: The market supply curve is upward sloping that shows the positive relationship between price…